Overall, the bank reported losses of£ 500,000 for the six months compared to a £2.1m profit last year, fuelled largely by the fall in asset worth of listed bank shares.

Pre-tax profits also fell 81 per cent to £600,000 compared to £3.2m reported last year, with earnings per share falling to 3.1p compared to 60.9p last year.

Chairman Ian Jones said: "The collapse in confidence and the losses in the two Scottish banks is an event of historical significance. As a result, profits are below expectations; a significant charge resulting from our shareholdings in the banking sector and a fall in net assets."